Pricing and Discount Leakage Check

FreeAbout three minutesProfit and margins
What it does

Estimates how much revenue your discounting gives away each year from how deep and how often you discount.

How it helps

Most discounting is habit rather than strategy, and it adds up. This puts an annual dollar figure on the leak, so you can see what firmer pricing would recover, usually straight to the bottom line.

How this benchmark is calculated

What you are measured against is an indicative benchmark set using ProfitPulse's internal commercial ranges. It is intended as commercial context, not a formal industry survey and not financial advice. The benchmark flexes by broad industry category, business size and commercial complexity before you are scored.

In about three minutes, free, you will see their estimated annual leakage in dollars from average discount depth and frequency, and how their price discipline compares.

Pricing and Discount Leakage Check

Answer a few quick questions to see where you stand.

How the leakage estimate is calculated

The formula

Estimated leakage = the share of sales discounted times the average discount depth, converted to dollars on your revenue.

Worked example

A business that discounts 40 per cent of sales by an average of 10 per cent is leaking about 4 per cent of revenue, which on 1,000,000 dollars is roughly 40,000 dollars a year.

How to read your result

Firm means your pricing discipline is holding. Worth a closer look means discounting is taking a real bite. Significant opportunity means substantial revenue is leaking, and pricing is the fastest profit lever you have.

What each figure means

  • Revenue for the last 12 months: Your total sales for the period, before any costs are taken out.
  • Average discount off list price when you discount: The average percentage you take off list price when you discount.
  • Share of sales that receive any discount: The share of your sales that receive any discount at all.

Common questions

What is pricing leakage?

Revenue you give away through discounting, measured by how often you discount and how deep the discount is.

Is some discounting fine?

Yes, when it is deliberate. The risk is habitual discounting that quietly compounds across a year.

What is the fastest way to recover it?

A discount floor with an approval step above it usually recovers margin faster than chasing volume.

How ProfitPulse can help

If discounting is leaking margin, our fractional CFO support sets the floor and approval rules and stages a reprice that holds customers.